Transcript Value Stream Mapping-A

Value Stream Mapping
Management is Essential
The lean transformation should
provide:
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Growth with improved margins
Growth with minimal capital
Growth without more employees
What are our main stumbling blocks?
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Years of bad habits
Financial focus with limited cost
understanding
A lack of system thinking and incentives
Metrics supporting a legacy model
Limited customer focus
Absence of effective operating strategies
How have these stumbling blocks been
addressed?
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Programs of the month (band aids)
Meetings, meetings, meetings, meetings
If we could just start over…..with
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Activities aligned with our business strategy
Efforts focused on NET improvements for the
company
Metrics supportive of fundamental change
Simple, constant communication of our plans
and achievements as an enterprise
Why not take the value stream
perspective?
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“Whenever there is a product (or
service) for a customer, there is a value
stream. The challenge lies in seeing it.”
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3 enterprise value streams:
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Raw Materials to Customer – Manufacturing
Concept to Launch – Engineerin
Order to Cash - Administrative Functions
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A Value Stream is the set of all actions (both
value added and non value added) required to
bring a specific product or service from raw
material through to the customer.
Value Stream Improvement vs.
Process Improvement
Value Stream
Process
Process
Process
Customer
Stamping
Raw
Material
Welding
Assembly
Cell
Finished
Product
Value Stream Mapping
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Follow a “product” or “service” from
beginning to end, and draw a visual
representation of every process in the material
& information flow
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Then, draw (using icons) a “future state” map
of how value should flow
Levels of a Value Stream
process level
Start Here
single plant
(door to door)
multiple plants
across companies
Value Stream Managers
Process 1
Process 2
Process 3
“Customer”
Kaizen
The Value
Stream Manager
Using the Value Stream Mapping Tool
Product/Service
“Family”
current state
drawing
Understanding how things
currently operate. Our Baseline!
future state
drawing
Designing a lean flow. Our vision!
plan and
implementation
The Goal of Mapping
Current State Mapping
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Completed in a day
Performed by a cross functional team of
middle managers responsible for
implementing new ideas
Resulting in a picture (and team observations)
of what we “see” when following the product
Future State Mapping
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Completed in a day with the same team
Focused on:
 Creating a flexible, reactive system that
quickly adapts to changing customer needs
 Eliminating waste
 Creating flow
 Producing on demand
Current State Value Stream Map
Future State Value Stream Map
Planning and Implementing
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Don’t Wait!
You need a plan!
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Tie it to your business objectives
Make a VS Plan: What to do by when
Establish an appropriate review frequency
Conduct VS Reviews walking the flow
Remember the other two value streams?
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Administrative activities are often a major
percentage of the total throughput time
Goal: 400% improvement in productivity over
10 years
Modest opportunities on the plant floor;
Untapped opportunities off the plant floor
Enterprise Perspective
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Engineer to Order
Configure to Order
Capital equipment manufacturers
Small companies (<500 employees)
Service Firms
We might begin in…
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Processes directly impacting the part
production
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Engineering
Quoting
Or, in value streams with direct customer
contact
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Order entry
Invoicing
Value Stream Mapping
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Helps you visualize more than the single
process level
Links the material and information flows
Provides a common language
Provides a blueprint for implementation
More useful than quantitative tools
Ties together lean concepts and techniques
Value Stream Management
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The map is just a picture of ideas!
The fundamental change is in how we choose
to manage the value stream as an integrated
system of decisions and tasks
Value Stream Management
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Use your strategic plan as a guide
Find the gaps in necessary performance
Improve value streams to meet the performance
Create new metrics to support new ways of thinking
and acting
Understand true product family costs
Manage operations by the value stream data
Always have a future state
Critical Success Factors
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Management must understand, embrace, and
lead the organization into lean thinking
Value stream managers must be empowered
and enabled to manage implementations
Improvements must be planned in detail with
the cross functional Kaizen teams
Successes must be translated to the bottom
line and/or market share
Putting it to Work!
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Continuously improving fundamentally flawed
processes will yield limited results.
Simply automating existing manual processes can
also yield limited results.
Seriously challenging old practices will provide
the dramatic results desired.